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Reverse charge mechanism

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saubhik samanta

Partner

21 Points Posted on 09 March 2015

Sir/Madam,

Please show me some light in the following matter :

I am a FCA and working partner of a CA firm. We are going to supply data entry operators to a Corporation wholly owned by Central Government. Wheather this service will be coverred under ' Chartered Accountant's service - clause 65(105)(s) ' or ' Manpower recruitment or supply agency - clause 65(105)(k) ' for applying service tax. Wheather reverse charge mechanism will apply here?

Replies (1)

Gaurav Vora

142 Points Posted on 09 March 2015

Dear Saubhik,

This depends on the kind of agreement you have with the Corporation. If the agreement is only for providing professional services, the same will fall under Chartered Accountant's Services, but if the agreement as you have mentioned is for supply of data entry operator, the same will fall under Manpower Recuitment & Supply Agency Services. The same will be covered by Reverse Charge Mechanism.